acct
The three most common forms of business organization
Corporation Sole Proprietorship Partnership
the financial statement that summarizes revenue and expenses for a period of time is the .... .....
Income statement
an advantage of the corporate form of organization is that a corporation
Provides limited liability to stockholders
management discussion and analysis and not disclosed to the financial statement are included in the ... ....
Annual report
who has the responsibility for preparing financial statement in accordance with generally accepted accounting principles
CPA firms who audit company
if revenues are less than expenses a company has
a net loss
which of the following aspect relate to the information provided in an income statement
ability to earn a profit from its operation during the current period
the system that maintains record of a company operation and then communicates that information to decision makers is referred to as
accounting
the two main functions of ...... are 1 to measure business activities and 2 to communicate those measurements to investors and creditors
accounting
appears on balance sheet
accounts receivable utilities payable common stock
An ... is a resource such as cash, land, building, that is owned by a company
asset
the accounting equation is
assets = liabilities + stockholders equity
the purpose of statement of cash flows is to provide information about the
assets, liabilities, and cash disbursement during a period
balance sheet
assets, liability stockholder equity
the financial statement that displays a firm financial position on a particular date is the ...... .....
balance sheet
which of the following financial statement show a company financial position on particular
balance sheet
which of the following appears on the statement of stockholders equity
beginning balance of retained earning dividends net income
ending retained earning is calculated as
beginning retained earning + net income - dividend
the purpose of a stat3ement of cash flows is to provide information about the
cash receipts and cash disbursement during a period
which of the following accounts is on the statement of stockholder equity
common stock
in our society the main tow function of accounting are to
communicate information to investors and creditors measure business activities
An enhancing qualitative characteristic of accounting information that refers to the financial statement users' ability to utilize accounting information to differentiate between companies that are reporting similar events is
comparability
if the same accounting principles and method are used for similar events by two different firms this enhances what accounting qualitative characteristic
comparability
positive income is consistent with effectiveness of management
confirmatory
according to the conceptual framework for accounting information to be relevant, what two qualities must it posses
confirmatory value predictive value
the qualitative characteristic of using the same accounting method each period overtime refers to the concept of
consistency
The form of business organization where a entity is legally separate from its owners and issues share of stock is a
corporation
a net loos ..... retained earning
decrease
income statement reports
expenses revenues net income or loss
which items are found on an income statement
expenses revenues
to be useful for decision making information should possess the fundamental qualities of relevance and ....
faith
.... Statement represent a company primary means of communicating information to external user
financial
The private sector organization that is currently responsible for setting accounting standards in the US is the
financial accounting standards board
companies communication information about their business activities primary though
financial statement
in financial accounting which of the following are the three types of business activities of a company
financing activities investing activities operating activities
if the SEC does not agree with a standard issued by the private sector it can
force a change in the standard
faithful representation requires that information is complete, neutral and ...
free form material error
which of the following are attributes of FASB
full time board members independence private sector organization
the income statement is considered most useful for predicting
future profitability
where is the time period covered by the income statement found
in the heading
when revenues are greater than expenses a company has a net ..... whereas when revenues are less than expenses a company has a net ....
income loss
information that best explains company stock price performance is reported in the ... ...
income statement
the financial statement that is most useful in explaining a company stock price performance is the
income statement
the purpose of an ..... ...... is to report the profit generating activities of a company over an interval of time
income statement
the statement used to predict future profitability and a company future cash generating ability is the
income statement
which financial statement reports revenues and expenses
income statement
financial accounting should provide information that
is useful to investors and creditors in making decisions helps predict tells about economic resources claims to resources and changes in resources
if the SEC does not agree with a standard issued by the private sector it can
issue a new FASB statement
amounts owed to creditors are
liabilities
which of the following items are found on a balance sheet
liabilities assets stockholders equity
financial information that may impact investors and creditors decision to as .... and must be reported under GAAP
material
the impact of financial accounting information on investors and creditors decision is closely related to the concept of
materiality
an income statement reports
net income or loss expenses revenues
which qualitative characteristic requires that financial information should not influence decision making to achieve a predetermined result
neutrality
in addition to the financial statement which of the following must be included in the annual reports
notes disclosure management discussion and anysis
which of these would be found on a company balance sheet
notes payable accounts receivable equipment
.... activities involve purchasing goods from suppliers, designing and manufacturing products and selling products to customers.
operating
three classification on the statement of cash flow are cash flows from
operating activities investing activities financing activities
the statement of cash flows classifies items as
operating and non operating
statement of cash flow
operating investing and financing activies
two sources of stockholder equity are amounts
paid in from shareholders earned by the corporation
operating activites
paying advertising expenses paying salaries to employees providing service to customers
consistently increasing income helps forecast the company ability to generate future cash
predictive value
accounting to the conceptual framework for accounting information to be relevant what two qualities must it possess
predictive value confirmatory value
which of the following and skills should an accounting professional possess
presentation skills technical accounting knowledge ability to work in teams leadership skills
career for accounting professional typically include a choice between pubic and ... accounting
private
the two main career paths in accounting are referred to as
private and public
the objective of financial accounting is to
provide useful information for external decsion
predictive value and confirmatory value are components of which fundamental qualitative characteristic
relevance
the heirachery qualitative characteristic of financial information required that in order to be useful to decisions making information should posses the fundamental characteristic of
relevance and faithful representation
undistributed profit that have accumulated in the company over time are called .... earning
retained
the accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as ... ....
retained earnings
which of the following line items appear on an income statement
revenues supplies expenses
income statement
revenues and expenses
appears on an income statement
salaries expense asset on balance sheet accounts payable
the financial statement that provides information about cash receipts and cash disbursements for the period is the
statement of cash flow
the financial statement that provides information about cash receipts cash disbursements for the period is the
statement of cash flow
financial statement that provides information about cash receipts and cash disbursements for the period
statement of cash flows
dividend paid to shareholders is on which financial statement
statement of shareholders equity
which financial statement shows the changes in common stock and retained earning
statement of stock holders equity
which financial statement shows the changes in common stock and retained earning
statement of stockholders equity
identify which of the following are included in the heading of the statement of stockholders equity for Xoff inc
statement of stockholders equity Xoff Inc the period of time covered by the statement
which of the following are financial statement
statement of stockholders equity balance sheet income statement
for a corporation the owners claims to the resources of a company are called
stockholders equity
the purpose of an income statement is to
summarize the profit-generating activities that occurred during a particular reporting period
which of the following are assets
supplies inventory
the heading of an income statement should include which of the following
the name of the business the accounting period covered by the statement the title of the financial statement
stockholders equity is
the owner claim to resources of the corporation
the heading on the statement of stockholders equity includes which one of the following
the period of time covered
..... refers to information being available to users early enough to allow them to use it in the decision process
timeliness
the qualitative characteristic when information is available early enough allowing it to be useful for a decision describes the concept of....
timeliness
true or false the statement of stockholder equity indicates the change in the various equity account
true
a consensus among different individuals appraising the value of land describes which qualitative accounting
verifiability
when the cost of an item can be traced to objective evidence of transaction such as a sales receipt canceled check and bank statement the information has the quality of
verifiability
Which are Liabilities
wages and salaries payable notes payable
which of the following accounts is on the statement of stockholders equity
common stock
which of the following accounts are stockholders equity accounts
common stock land retained earnings
the primary function of accounting are to
communicate information to decision makers measure a company activities
faithful representation requires information to have which of the following three characteristics
completeness neutrality free from material error
the four primary statement published to provide information to external user include which
statement of cash flows income statement statement of stockholder equity balance sheet
which of the following line items appear on an income statement
supplies expense salaries expense service revenue
financial accounting should provide information that
tells about economic resoursed claims to resources and changes in resources and claims help to predict cash flows
miton corp has beginning retained of $800 during the year miton had $2,000 of revenues and $900 in expenses miton paid a dividend of $100 what is retained earring at year end
$1,800 Beginning $800+$2,000 revenues - $900 expenses - $100 dividend =$1,8000
Rahls issues stock to investors for $ 20,000 and has $5,000 of net income in its first year of operation. during year 2 rahls earns $10,000 in net income and pays a dividend to stockholders of $4,000 what is the balance in stockholder equity at the end of year 2
$20,000+$5,000+$10,000-$4,000=$31,000
The system that maintains records of a company operation and then communicates that information to decision makers is referred to as ....
Accounting
the financial statement that displays a firm financial position on a particular date is the ..... ....
Balance sheet
true or false dividend paid to shareholders are recorded on the income statement as an expense
FALSE
....... is the common abbreviation for the board that currently establshed financial accounting and reporting standards in the u.s
FASB
Three most common forms of business organization are sole proprietorship, ...... , and ....
Partnership corporation
Operating Activities
Paying salaries to employees Paying advertising expenses